All Forum Posts by: Phil Hong

@Sierra G.

They presented me with the option to collect coins on my behalf but recommended I collect my own coins. So that's what I do. Problems with the machines are routed to the laundry company without my involvement and I don't have to shell out big bucks for laundry machines. I still recommend renting the machines so you don't have to worry about laundry going forward. Good luck!

Hi @Sierra G.

Have you considered leasing the equipment instead of buying? I lease from WASH and it has worked out great. My rationale for putting in on-site laundry is to attract better tenants. My competitors don't offer on-site laundry so that helps me attract and keep the best tenants.

The laundry company takes care of the machines and I pay them a reasonable rental fee. The money from the machines covers my rental cost and extra utilities. I don't need to worry about sinking a bunch of money into laundry machines and they take care of all the service. But most importantly, good tenants make my job so much easier.

Hi @Jordan Harris

Have you tried looking for a local REIA group? I have met a few BP'ers at FIBI South Bay events. You will find plenty of local groups on meetup.com including FIBI South Bay (

http://www.meetup.com/fibisouthbay/)

Good luck!

Phil

@Aziza Sackett

Again, if you're looking for HELOC providers try doing a quote on bankrate. They will ask for you location information and only provide you with lenders who do loans in your area.

Sorry I don't have any advise specifically for film professionals. I'm guessing most banks won't care which industry you work in. They only care about your ability to repay the loan. In my experience, this usually means steady, reliable history of income or a lot of liquid cash reserves. 

Hi @Aziza Sackett

As long as you have good credit and less than 80/20 LTV you shouldn't have a problem getting a HELOC. Check you local credit unions and bankrate.com.

If you're looking for specific help, please share your criteria.

Good luck!

Phil

Hi @Account Closed

I have mortgages with 3 different banks for 3 different properties. I originate all my loans through a small mortgage company and then they immediately turn around and sell it to another bank. It works out great because their underwriters understand investment properties and look at more than just my w-2 income. Once they sell my loan it frees up their capital and they are ready to do my next loan.

One piece of advice I can give is skip the big banks. They tend to look at your w-2 income and not at rental income. 

Good luck!

Phil

@Gene D.

The rule is you must have designated the property as your primary residence for 2 out of the past 5 years to qualify for the exclusion. It looks like you still have some time left to decide if you want to sell. Here is the official language from the IRS:

To exclude gain, a taxpayer must both own and use the home as a principal residence for two of the five years before the sale. The ownership and use periods need not be concurrent. The two years may consist of 24 full months or 730 days. Short absences, such as for a summer vacation, count as periods of use, but longer breaks, such as a one-year sabbatical, do not. The taxpayer also must not have excluded gain on another home sold during the two years before the current sale.

http://www.irs.gov/uac/IRS-Issues-Home-Sale-Exclus...

@Javier Navarro

I second Mark's reply. I just did a refi for my LA property earlier this year with zero closing costs and the appraisal fee refunded after closing. 

@Roy Kwak

Hi Roy,

Great to see you on BP and congrats on your first post! 

Here is what I would consider:

1. I see that you are "hoping" to get $3300-3500 once the remodel is done. You should be sure that this is reasonable given the area. Check multiple sources (Craigslist, Postlets, realtors, etc) for listings and confirm that others are asking and getting comparable rent for your projected type of rental product.

2. I agree with @Franklin Romine about forcing improved equity. As a new RE investor you will see a much faster net worth increase if you leverage the new equity you create to acquire more RE, versus waiting for cash flow to recoup your costs. Consider using the additional rental income to support a cash-out refi.

3. Go with a proven designer with a proven track record. When you are transitioning between tenants, vacancy is very expensive and getting the unit turned over quickly will be worth the money you spend on the designer. 

Phil

@Account Closedundefined